Boundaries : [Murata Machinery, Ltd.] Head Office, Inuyama Plant, Ise Factory, and Kaga Factory
[Muratec Mechatronics Co., Ltd.] Shiga Plant and Oita Factory

Results

Environmental Performance Data ^{* 1}

(Year ended March)

• * 1 Scope: Head Office, Inuyama Plant, Ise Factory, Kaga Factory, and Muratec Mechatronics Co., Ltd. (Shiga and Oita)
• * 2 Some values for the fiscal year ending March 2023 have been revised due to a review of the definitions.
  From the fiscal year ending March 2024 onward, emission factors for each electric power company are used.
  (Until the fiscal year ending March 2023, emission factors based on substitute values from the base year of March 2018 were used.)
• * 3 Values are set with the base year of March 2018 as 100%.

Resource and environmental issues are serious threats to society. Muratec Group recognizes that and is working to resolve these issues in two ways: reducing the environmental impact of its business activities and providing environmentally friendly products and services.

Basic Policy

In order to contribute to the realization of the society of sustainable development, we set up a mechanism to manage the environmental burden in our business activities, and conduct environmental conservation worldwide in all of our business fields.

1. Reducing environmental impacts on business activities
2. Promoting products with high environmental value
3. Complying with legal and other requirements
4. Setting the environmental goal and improving continuously
5. Disclosing environmental information
6. Raising environmental awarenes
7. Living in harmony with nature

Environmental Management System

Muratec group has obtained ISO 14001 certification for each of our offices. ISO 14001 is an international standard related to environmental management systems (EMS). It provides a framework for organizations to design and implement EMS, with the goal of continuously improving environmental performance.
At Muratec, we are committed to protecting the global environment through various business activities, including:
- Reducing power consumption
- Minimizing waste
- Efficiently using resources
- Reducing the risks of chemical substances
These efforts contribute to a more sustainable future for all.

ISO14001 registered offices
- Head Office
- Inuyama Plant
- Ise Factory
- Gifu Factory (Murata Tool, Ltd.)
- Muratec C.C.S, Ltd.
- Shiga and Oita Factory (Muratec Mechatronics Co., Ltd.)

Muratec Group conducts business continuity planning (BCP) with the aim of protecting lives, preventing damage to surrounding areas, fulfilling its supply responsibilities to customers, and ensuring the rapid recovery of its operations. Effective BCP entails analyzing risks to identify threats to our company; creating manuals, plans, and crisis management systems to manage these risks; identifying problems and making improvements through BCP training programs and repeating this process over and over.

BCP promotion structure

We have established a crisis management committee chaired by the president, and have built a company-wide risk management system made up of crisis management committee members from each business division, and are considering countermeasures for company-wide risk issues.

Examples of initiatives

Compact drill

We conduct small-scale drills to simulate the recovery response in the event of a natural disaster or power outage.

Cross-site drill

We conduct drills to ensure coordination between our offices in the event of a disaster.

VR evacuation drill

The evacuation drill will be conducted under the assumption of a fire, using VR goggles to recreate a situation similar to that of an actual disaster scene.

Muratec Group shall, under the direction of its management, systematically and continuously improve and enhance information security in order to protect important information assets such as trade secrets held by the company, personal information of employees, various confidential and personal information obtained from customers and suppliers, and information systems that have a significant impact on business activities from information security threats. We will strive to improve and enhance information security systematically and continuously under the direction of the management.

1.Information security management system

In order to implement, maintain, and improve information security measures and prevent recurrence of incidents, we have established an "Information Security Committee" headed by the "Chief Information Security Officer" to manage overall information security.

2.Compliance with legal and contractual requirements

Muratec Group complies with laws, regulations, norms, and contract obligations with customers, suppliers, etc. related to information security.

3.Education on information security

We continuously educate our employees to acquire the knowledge and skills required for information security.

4.Implementation of countermeasures and response to accidents

We will implement appropriate information security measures to prevent falsification, loss, leakage, unauthorized intrusion, and other damage to information assets. In the unlikely event that an accident occurs, we will promptly investigate the cause, prevent the damage from spreading, and strive to prevent recurrence.

5.Implementation of Continuous Improvement

We regularly review that information security is properly operated and maintained, and continuously improve information security.

Examples of initiatives

Internal control audit

To evaluate whether information security measures and their operation are properly managed and implemented, we periodically conduct an annual internal information security control audit, focusing on divisions that hold important information. If a problem is uncovered by the internal audit, each department takes corrective action and reviews the company-wide information security measures for continuous improvement.

Education on information security

We conduct annual training for all employees to raise awareness of the importance of information security. We also conduct annual training for information security managers to ensure that they understand their roles and objectives, and to improve their technical knowledge and skills.

Procurement Policy

1.Strict adherence to laws, regulations and social norms

We will conduct fair and transparent business activities by strictly adhering to laws and regulations, starting with the Subcontractor Act, as well as by adhering to social norms, including the elimination of discriminatory treatment, the prohibition of child labor and forcedlabor, respect for intellectual property rights and the prevention of corruption.

2.Promotion of fair and impartial transactions

We will conduct transactions that are fair, transparent, subject to free competition and reasonable.
We will not accept or provide entertainments, gifts, money or any form of bribes for the purpose of achieving unreasonable profits or other benefits. We will respect healthy business partnerships that strictly abide by laws and regulations.

3.Business partner selection standards

In addition to items 1 and 2 above, we conduct comprehensive evaluations when selecting the suppliers and vendors. Factors include the stability of their business foundations, the assurance of productspecifications and quality that meet our needs, high levels of technological development capabilities, strict adherence to deadlines,stable supply and reasonable prices.

Examples of initiatives

Supplier questionnaire survey

We are conducting a questionnaire survey of our major suppliers to determine the extent to which they are implementing the various policies that we ask them to comply with, the labor, health and safety, environmental conservation, ethics, and management system items of the RBA Code of Conduct, and their business continuity plans (BCPs). In addition, we have started an initiative in which our employees visit manufacturing sites to provide support for improvement.

RBA Code of Conduct supplier questionnaire results (fiscal year ended March 2023)

*The questionnaire was updated in the fiscal year ended March 31, 2023, and conducted on 112 companies (112 companies responded).

Supplier BCP questionnaire results

*The questionnaire was conducted on 112 companies in 2023 (110 companies responded).

RBA Code of Conduct seminar

We regularly holds RBA Code of Conduct seminars for suppliers, subcontractors, temporary staffing agencies, and others with whom we do business to deepen their understanding of the RBA Code of Conduct and to ask them to comply with it.

Promoting health and productivity management among suppliers

In order to promote the spread of health management together with our suppliers, we introduce our activities to help you understand our health management and provide archived videos of health awareness seminars we have held.

Enhancing supplier diversity

We support the idea that promoting diversity in the supply chain will deliver new values, perspectives, and possibilities we never had before. We value doing business with companies run by women, sexual minorities, and people with disabilities (diverse suppliers). We will continue to help build a more diverse and inclusive supply chain through this initiative.

Muratec Group aims to be a company that meets the demands and expectations of society by conducting fair business activities in compliance with not only the laws and regulations of each country but also social norms, based on the principles of conduct based on our corporate philosophy and the Muratec Code of Conduct, which defines the behavior that all executives and employees of the Group should keep in mind.

Muratec Code of Conduct

1. Products and services
   We will develop and offer products and services that are safe and useful to society.
2. Fair business practices
   We will engage in appropriate transactions, with fairness, transparency and free competition. Moreover, we will maintain sound and normal relations with political bodies and governmental organizations.
3. Proper Information disclosure
   We will engage in broad communication with society and disclose our corporate information in a timely and appropriate manner.
4. Personnel, labor management and workplace environment
   We will be considerate of our corporate officers’ and employees’ diversity, character, and individuality and realize a safe and employee-friendly workplace environment. We will also aim to promote physical and mental health.
5. Intellectual property and personal information
   We will conduct appropriate data management to protect intellectual property and personal information.
6. Environmental initiatives
   We will actively engage in tackling environmental issues in our corporate activities as well as through our products and services.
7. Contribution to society
   We will actively participate in activities as a “good corporate citizen” and contribute to societal development.
8. No connections to anti-social elements
   We will not have any involvement with anti-social groups and organizations that may threaten the order and safety of civil society.

All the board members and the workplace leaders shall recognize their own important role in realizing the essence of this Code of Conduct, and lead by example in raising awareness about proper conduct amongst people involved.

Should a violation of this Code of Conduct occur, the senior management shall lead the entire organization in rectifying the problem, searching out its true cause and working to prevent its reoccurrence, and shall mete out a strict punishment not only to the violators but also to themselves.

Daisuke Murata,
President of Murata Machinery
Enforcement: August 17, 2007
Amendment: April 4, 2023

Compliance with the Responsible Business Alliance (RBA)

Murata Machinery, Ltd. declares that it will support the Responsible Business Alliance (RBA) Code of Conduct (*) and actively promote conformity to said Code and its standards in order to comply with the law, conduct business activities with fairness and integrity, ensure a safe working environment, treat workers with respect and dignity, and conduct business responsibly and ethically with respect to the environment.

* The Responsible Business Alliance (RBA) is an organization dedicated to CSR in global supply chains and has established a common Code of Conduct in the fields of labor, the environment, health and safety, and ethics.

Compliance promotion structure

Muratec Group has established a Compliance Committee in order to ensure the implementation of internal controls. The heads and leaders of each division and group company departments serve as committee members. They focus on raising compliance awareness and ensuring compliance in their organizations. At the same time, committee members serve as close advisors to employees in their respective departments.

Whistleblowing system

As a system for early detection and prevention of compliance risks that may lead to violations of laws, regulations, and internal rules, we have established an internal reporting and consultation service, and all employees are informed of this service. We have also established an external reporting desk for use by our suppliers and other stakeholders.

Click here for the compliance desk (Japanese)

Examples of initiatives

* Scope: Employees of the Murata Machinery, Ltd. and Muratec group companies in Japan

Compliance awareness survey

We conduct a compliance awareness survey once every two years to ascertain each employee's level of awareness of compliance and the workplace culture, which is used to improve internal compliance activities.

E-learning

We conduct e-learning for all employees twice a year to instill and establish awareness of compliance and risk management in each employee.

Seminar for compliance promotion members

Compliance seminars are held for compliance promotion members with the aim of identifying compliance risks in their own departments and acquiring the concept of planning countermeasures.

Delivery of compliance learning materials

With the aim of deepening employees' understanding of compliance by making them aware of more familiar compliance case studies, we distribute educational materials such as the latest news and case studies every month.

In addition to implementing internal training programs to prevent workplace harassment, we have made an internal hotline as contact points for consultations related to compliance and harassment, as well as for reporting unlawful activity when discovered. This hotline can be used by every group employee, including temporary staff. We strictly protect the secrecy of the employees who use these desks and prohibit acts of reprisal and detrimental treatment.

Human Rights Policy of the Murata Machinery Group

As fundamental principles throughout our business activities, Murata Machinery Ltd. and its group companies (hereinafter referred to as the “Group” or “we” or “our”) respect human rights that are fundamental rights entitled to all human beings. The Group places the Human Rights Policy of the Murata Machinery Group (hereinafter referred to as this “Policy”) as the highest-level policy among all our human rights-related policies and rules. We promote efforts to minimize adverse human rights impacts that we may, directly or indirectly, cause or contribute to through our business activities.

Principles to respect

The Group acknowledges and respects the International Bill of Human Rights, the United Nations Guiding Principles on Business and Human Rights, the International Labour Organization’s Declaration on Fundamental Principles and Rights at Work, and other local laws and regulations applicable in the jurisdiction where we conduct our business activities. If any discrepancy arises between human rights expressed in applicable local laws and regulations and in the international standards, the Group seeks ways to respect and prioritize the international standards.

Scope of application

This Policy applies to all officers and employees of the Group. The Group also expects our business partners to support and implement this Policy to work together to promote respect for human rights.

Initiatives to respect human rights

The Group recognises it especially essential to promote the following initiatives for human rights issues linked with our business activities and continues to promote the initiatives by addressing each case with integrity.

Ensuring responsible procurement practices

We share this Policy with our suppliers, review and assess their compliance status, and promote respects for human rights throughout our supply chains.

Prohibiting discrimination or harassment

We respect individual human rights and diversity. We prohibit any discrimination or harassment on the ground such as a nationality, race, ethnicity, religion, ideology, creed, gender, age, disability, gender identity, sexual orientation, pregnancy status, and employment status.

Prohibiting forced labor and child labor

We prohibit and do not tolerate any form of forced labor, slavery or child labor, including human trafficking.

Occupational health and safety

We provide a safe, secure, and hygienic working environment.

Working hours (rights to rest and leisure) and wages

We commit to implement responsible labor practices, including appropriate management of working hours and securing minimum wages.

Protecting personal data

We acknowledge the importance of personal data and strictly manages it to prevent leakage. We do not permit unauthorized or undue use of personal data obtained in our business.

Freedom of association and right to collective bargaining

We respect freedom of association and the right to collective bargaining in accordance with local laws and regulations applicable in the jurisdiction where we conduct our business activities.

Human rights due diligence

In accordance with the UN Guiding Principles, the Group establishes a human rights due diligence system and works to implement continuous measures and improvements to identify, assess, redress, mitigate and prevent adverse human rights impacts linked to our overall business activities. If we identify a direct or indirect adverse impact on human rights, we commit to mitigate the impact through dialogue and appropriate procedures in accordance with this Policy and other applicable international standards.

Grievance mechanism

The Group installs contact points to provide all stakeholders with access to report any human rights abuses faced through our business activities and addresses grievances for remedy and corrections. In doing so, we do not allow any disadvantageous treatment of whistleblowers and commit to protect their anonymity and confidentiality.

Communication and education

The Group provides adequate training and education to all of its officers and employees to embed and comply with this Policy. We also share this Policy with our business partners to promote an understanding of and making allies of this Policy.

Dialogue with stakeholders

With regard to the human rights initiatives set forth in this Policy, the Group shares human rights issues linked to its business activities, engages in dialogue and consultation with stakeholders, and strengthen our efforts to respect human rights.

Information disclosure

The Group corporate disclose s website and other the compliance status of this Policy as appropriate through our communication means.

Prohibition of Forced Labor and Child Labor

Muratec Group respects the UN Declaration of Human Rights and the Fundamental Principles and Rights at Work declared by the International Labor Organization (ILO) and the laws of the countries in which we operate.
As standards in our Code of Conduct and Implementation guidance of Code of Conduct, we have specified respect of human rights and the prohibition of discriminatory treatment, prohibition of forced or child labor or other similar practices.
To this end, we comply with the requirements including, but not limited to, attached requirements and enhance our supply chains to comply with our expectations.

1. No levies, placement fees even if allowed by law
2. No fee to workers as defined by RBA*
3. No worker debt related to obtaining or keeping job
4. Fees found to be charged repaid within 90 days
5. Comprehensive employment contracts
6. No changes to the contract or work conditions
7. No holding worker's original identification
8. Secure personal storage provided
9. Voluntary resignation
10. Notice period not longer than one month
11. Workers must have freedom of movement
12. Monitor their labor agents and interview Foreign Migrant Workers
13. Policies and procedures must be in place

*For the RBA, click here to visit the RBA website.

The Muratec Group makes protecting the health and safety of its employees a top management priority. We have established our safety and health policy to realize a safe and comfortable working environment and promote the mental and physical health of our employees. That’s why we have established an occupational safety and health management system headed by the president and CEO. The safety and health committee of each business site carries out their own actions while the EHS Committee, based out of the head office, implements group-wide initiatives with an eye to making continuous improvements.

ISO 45001 certification

The Inuyama Health and Safety Site(*1) based at the Inuyama Plant acquired ISO 45001 certification, an international standard for occupational health and safety management systems, in March 2021. Through risk assessments and legal compliance evaluations, as well as annual internal audits and management reviews, we aim to continuously improve our activities and eliminate occupational accidents.

*1 Inuyama Plant (including affiliated companies), Ise Factory, Toyohashi Factory, and Murata Tool Gifu Factory

We strive to prevent occupational and traffic accidents by identifying and improving dangerous areas through risk assessments and near misses, and by raising safety awareness through education and awareness activities. We also set numerical targets according to the issues faced by each business site, and manage performance and achievement rates.

Risk assessment

We have deployed risk assessment and legal compliance evaluation methods and forms in accordance with ISO45001 to our major business sites to identify and reduce risks and ensure compliance with the latest laws and regulations.

Safety and health notebook

We distribute pocket-sized "safety and health handbooks" containing safety and health rules to all employees, and provide training at the time of distribution. We are working to improve each employee's safety and health awareness by reading each page one by one during morning and lunch meetings.

Labor-management safety patrol

Each year, the president, vice presidents, officers, and labor union inspect major worksites. The goal is to improve overall health and safety by identifying problems from a company-wide perspective. This approach differs from the daily patrols carried out at each worksite.

Employee training

Various types of education and training are provided to prevent industrial accidents and traffic accidents.

Safety and discipline education

Facilities are set up at each plant to provide safety education by simulating the hazards that may be present in the workplace.

Traffic safety course

Once a year, we conduct a course on the importance of traffic safety based on videos of traffic accidents and near-misses.

Industrial accidents

When an industrial accident occurs, we identify the conditions of people, equipment, and the management system at the time of the accident, analyze the cause of the accident, and take countermeasures. To prevent similar accidents from occurring, we maintain a centralized record of past accidents and make it available to employees.

Frequency rate of lost-time injury

* The number of lost-time injuries that occurred in a workplace per million hours worked, a measure for the frequency of work-related injuries
* Japanese manufacturing industry average is quoted from the Ministry of Health, Labor and Welfare's occupational accident trend survey

Severity rate of lost-time injury

* The number of lost workdays per 1,000 hours worked, a measure for the severity of work-related injuries
* Japanese manufacturing industry average is quoted from the Ministry of Health, Labor and Welfare's occupational accident trend survey

Declaration on the health and productivity management

Policy

Due to the declining birthrate and aging population, as well as the social issue of a shrinking workforce due to health reasons, we recognize the importance of maintaining and promoting the mental and physical health of our employees. Improving the productivity and performance of each employee is also a crucial management. We have identified five key themes: diet, exercise, sleep, smoking, and mental health. Measures are being implemented in each area.

Muratec health and productivity management priority areas

Targets and Results

To solve management issues, numerical targets are set for each indicator, and performance and achievement rates are managed.
* Scope: Employees of the Murata Machinery, Ltd. and Muratec group companies in Japan

Employee health status

Employee health care

Indicators of the final goals

Examples of initiatives

Improvement of lifestyle

Various measures are being implemented to improve diet, exercise, sleep, and smoking, which are priority areas.
- Improving employee habits through the use of health management apps
- Provide programs to support smoking cessation
- Seminars and e-learning on lifestyle improvement, disease prevention, cancer control, etc.

Promoting communication within the company

Various events are held in the hope that communication among employees will be stimulated, leading to better physical and mental health. In addition, we have in-house associations and club activities, and we provide places for them and support their activities.

Athletic meet

Softball tournament

Yoga class

Mental health measures

Every year, we conduct stress checks at all of our business sites and offices in Japan. Based on the results of the stress checks, we conduct a group analysis of stress trends and causes at each workplace, and provide feedback to managers and formulate action plans to improve the workplace environment. In addition, we provide mental health e-learning for young employees as a self-care program, and labor management information sessions for managers as a line care program. The percentage of employees who were determined to be "highly stressed" by stress checks was 12.0% in FY2023, compared to 12.1% in FY2022.

Prevention and early detection of disease

We ensure that our employees receive regular health checkups, and we maintain a 100% health checkup rate in Japan. We also provide specific health guidance and various other medical checkups to prevent and detect diseases at an early stage.

Diverse work styles

We have systems to maintain work-life balance, such as staggered working hours, shorter working hours, working at home, and paid leave in one-hour increments. In addition, a support system for balancing work and medical treatment has been established to enable employees with pre-existing medical conditions to continue treatment while working.

Certification

Murata Machinery Co., Ltd. has been certified as one of the "White 500" in the "Excellent Corporation for Health Management 2024 (Large-Scale Corporate Sector program)" sponsored by the Ministry of Economy, Trade and Industry.  We have also been certified as a Sports Yell Company 2024 by the Ministry of Education, Culture, Sports, Science and Technology, and as an excellent company for promoting cancer control by the Ministry of Health, Labour and Welfare.

Placing top priority on ensuring the safety and health of our employees, we will continuously improve our safety and health activities for better outcomes. In this way we will create a safe and comfortable workplace, maintain the physical and mental health of our people, and help each one of them in their pursuit of improved quality of life.

Policy

At our company, we prioritize occupational safety and health as a fundamental principle. We don’t just talk about it; we put it into practice. Our collective goal is to create a workplace with zero accidents—a place where every individual, across all aspects of our business, can work safely and maintain their well-being.

1. Ensuring Workplace Safety and Well-Being: To prevent work-related accidents and promote the well-being of our employees, every Muratec employee will carry out the following activities and safety precautions under the guidance of the ‘All-Muratec Employee Health and Safety (EHS) Committee’:
   Identify Hazards: We will identify factors that may endanger workplace safety and health, evaluate potential risks, and take measures to minimize them.
   Employee Health: Our focus will be on maintaining or improving employee health and creating a pleasant work environment.
   Mental Well-Being: We will also consider our colleagues’ mental well-being.
2. Compliance with Regulations: Muratec is committed to observing all relevant laws, internal regulations, and other requirements related to safety and health, including meeting our customers’ expectations.
3. Safety Education and Training: We will provide relevant education and training to ensure that each employee becomes more safety-conscious and acts safely out of habit.
4. Performance Monitoring: Muratec will track and monitor the results of our safety and health activities using specific performance indicators. Guided by these trends, we will continuously improve our safety practices proactively.
5. Policy Review and Communication: Periodically, Muratec will review our Health and Safety Policies for relevance and appropriateness. We will communicate these policies to all employees and disclose them to society at large.